The Philippines is celebrating this month of October the 29 th National Statistics Month
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1 Measuring the Sustainability of Tourism: The Philippine Experience Vivian R. Ilarina Assistant National Statistician 2 nd Meeting of the Working Group Of Experts on Measuring Sustainable Tourism UNWTO Headquarters, Madrid Spain 2425 October 2018 The Philippines is celebrating this month of October the 29 th National Statistics Month Theme: Exploring Philippine Wonders in Numbers: Statistics Towards Sustainable Tourism Development ( PSA Memorandum Circular No dated 10 July 2018 enjoins all agencies of the government, local government units, academic institutions, state universities and colleges, and private sector at the national and subnational levels to actively participate in and support the 29 th NSM celebration 1
2 Outline Background Tourism Satellite Sustainable Tourism Way Forward 3 I. Background MST is an emerging trends; Declared in the Manila Call for Action on Sustainable Tourism during the 6 th UNWTO International Conference on Tourism Statistics in June countries including Philippines are committed and gather technical expertise for the development and implementation of the Statistical Framework for Measuring Sustainable Tourism 4 2
3 I. Background SDGs 3 targets are related to tourism Target 8.9 by 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products. Target 12.b develop and implement tools to monitor sustainable development impacts for sustainable tourism that creates jobs, promotes local culture and products. Target 14.7 by 2030 increase the economic benefits to SIDS and LDCs from the sustainable use of marine resources, including through sustainable management of fisheries, aquaculture and tourism. 5 I. Background Philippine Development Plan (PDP) for outlines the strategies intended to propel the expansion of tourism industries as well as measuring sustainable tourism 6 3
4 I. Background Philippine Statistical Development Plan (PSDP) enumerates the statistical programs related to tourism (Chapter 18) particularly on: Thrusts and strategies New development programs Buildingup current efforts 7 The Philippines TSA was started in
5 Tourism is a key driver of economic growth for the Philippines 9 Tourism contributed 12.2% to the Philippine economy in Million Php 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000, TDGVA GDP Share to GDP using 2012 IO Percent Tourism was valued at PhP 1.93 trillion in 2017, up by 24.2% from
6 Inbound tourism expenditure contributed 9.2% to the total exports* in 2017 Million Php 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000, Percent Inbound Tourism Exports Share of Inbound Tourism to Export Expenditures of inbound visitors to the Philippines reached PhP billion in *Note: Total exports of goods and services were sourced from the National Accounts. Inbound tourism ranked 3 rd among the biggest export items in 2017 Miscellaneous services 1,569 Semiconductors 1,071 Inbound tourism 449 Electronic Data Processing Transportation Billion Pesos *Note: Exports of goods and services were sourced from the National Accounts while Inbound tourism came from PTSA. 6
7 Distribution of Tourism Characteristic Industries, Philippines, 2017 Entertainment 13% Travel agencies 9% Shopping 14% Transport 14% Miscellaneous 14% Food and beverage 6% Accommodation 30% Accommodation services, Shopping, Miscellaneous and Transport had the highest shares among tourism characteristic industries in 2017 Million Php 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 Inbound tourism expenditure contributed 9.2% to the total exports* in Percent Inbound Tourism Exports Share of Inbound Tourism to Export Expenditures of inbound visitors to the Philippines reached PhP in This represents 43.9% growth from 2016 level. *Note: Total exports of goods and services were sourced from the National Accounts. 7
8 Inbound tourism ranked 3 rd among the biggest export items in 2017 Miscellaneous services 1,569 Semiconductors 1,071 Inbound tourism 449 Electronic Data Processing Transportation Billion Pesos *Note: Exports of goods and services were sourced from the National Accounts while Inbound tourism came from PTSA. Million Php 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 Domestic tourism expenditure contributed 22.8% to the total HFCE* Percent Domestic tourism HFCE Share of Domestic Tourism to HFCE Expenditures of domestic visitors reached PhP 2.64 trillion in It grew by 25.5 % from 2016 level. * HFCE was sourced from the National Accounts. 8
9 Internal tourism expenditure contributed 18.7% to the total HFCE and exports in 2017 Million Php 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000, Percent Internal tourism Expenditures of all visitors (inbound and domestic) within the Philippines amounted to PhP 3.09 trillion in 2017 It grew by 27.8% from 2016 level. Employment in tourism industries shared 13.1% to the total employment in 2017 Thousand Persons 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5, Percent Tourism Employment Total Employment Share of tourism employment to total employment About 5.3 million people are employed in tourism industries. About 131 for every 1000 employment are in tourism industries. 9
10 Distribution of employment by tourism industries, 2017 Accommodatio n and food and beverage 33% Miscellaneous 16% Passenger transport 38% Travel Agents etc. 1% Recreation and entertainment 6% Retail trade 6% Passenger transport (38%) and Accommodation and food and beverage serving services (33%) had the biggest share in employment among tourism industries. While tourism as an economic activity contributes to the growth of an economy, it also contributes to irreversible damage to the environment (IRTS, 2008) Benefits do not come without costs 20 10
11 There is a need to develop indicators that would keep track the pressures being exerted by tourism activities on the environment. Measuring Sustainable Tourism Tourism that takes full account of its current and future economic, social and environmental impacts, addressing the needs of visitors, the industries, the environment and host communities. Source: UN World Tourism Organization, Focus on the linkages between tourism and the environment Environmental pressures include: Energy use (petroleum & electricity) Water use Carbon dioxide Emission 22 11
12 Economy Environment Society Framework Current measurement: New generation measurement: Statistical domains Social Environment Tourism 23 Framework Linking TSA and SEEA Tourism Environment Inbound, domestic, outbound tourism consumption Production by tourism industries Direct tourism GVA, GDP Employment in tourism industries Physical flows: water, energy, emissions, waste Stock of resources: water, land, fish, timber Expenditures on the environment Ecosystems condition & services (spatial data) 12
13 Data and Data Sources Philippine Tourism Satellite Accounts InputOutput Tables Gross Value Added from the National Accounts Department of Tourism Administrative data number of tourists, expenditures, destinations, etc. Estimation Procedures Energy Consumption To derive the energy expenditures of tourism industries Total Expenditures of Industry A * Technical Coefficient of Electricity & Petroleum in the IO Table Convert to physical terms (GWh, Liters) using appropriate prices Water Consumption To derive the water use of tourism industries Total Expenditures of Industry A * Technical Coefficient of Water Supply in the IO Table Convert to physical terms (cubic meters) using appropriate prices 26 13
14 Estimation Procedures CO 2 Emission from the use of Petroleum and other Fuels 1. Convert the per thousand barrels (MB) consumption to per barrels (bbl). Based on Kyle s Converter 2 online, 1 MB is equivalent to 1,000 bbl. 2. Multiply this to the average heat content of crude oil, which is 5.80 mmbtu per barrel, (EPA, 2017). 3. Multiply the product with the carbon coefficient and fraction oxidized, which is kg of Carbon per mmbtu and the fraction oxidized is 100 percent. After this, multiply with the ratio of molecular weight of carbon dioxide to that of carbon (44/12). Estimation Procedures CO 2 Emission from the use of Electricity 1. Convert electricity consumption to kwh (1 GWh is equivalent to 1,000,000 kwh) 2. Multiply the electricity consumption in kwh by the carbon dioxide (CO 2 ) emission rate (per unit of electricity delivered), which is computed as Average CO 2 output rate for electricity generated (1,122.9 lbs CO 2 /MWh) x delivered electricity rate (1/(10.073) (assuming transmission and distribution losses at 7.3%) x conversion factor to MWh (1 MWh/1,000 kwh) x conversion factor to metric tons (1 metric ton/2,204.6 lbs) Assumption: the electricity use of tourism industries is the same as the electricity use of households/home
15 Electricity Consumption 90, , , , , , , , , Total Economy Consumption Tourism Consumption Share to Total Consumption 29 Petroleum and Other Fuel Products Consumption 60, , , , , , Total Economy Consumption Tourism Consumption Share to Total Consumption 30 15
16 Energy Consumption 90, , , , , , , , , Total Economy Consumption Tourism Consumption Share to Total Consumption Water Consumption 4,000,000, ,500,000, ,000,000, ,500,000, ,000,000, ,500,000, ,000,000, ,000, Total Economy Consumption Tourism Consumption Share to Total Consumption 32 16
17 10,000, ,000,000.0 Petroleum and Other Fuel Products Consumption CO2 Emissions 8,000, ,000, ,000, ,000,000.0 Entertainment and other recreation services Travel Agencies and other reservation services Transport Services 4,000, ,000, ,000, ,000,000.0 Accommodation services for visitors and food and beverage serving services Tourism Industries ,000,000.0 Electricity Consumption CO2 Emissions 3,500, ,000, ,500, ,000, ,500, ,000, ,000.0 Entertainment and recreation services Travel agencies and other reservation services Transport services Accommodation services for visitors and food and beverage serving services Tourism Industries
18 IV. Ways Forward a. To strengthen the technical capacity of compilers and producers of data on measuring sustainable tourism as well as to be able to institutionalize the provision of quality data on a regular basis; b. To enhance the existing surveys on tourism to ensure that data requirements on MST are taken into account; 35 IV. Ways Forward c. To link the MST with the environmental accounts, both physical and monetary accounts; and d. To prepare a practical guide on stepbystep procedures how measuring of sustainable tourism are compiled following the international guide
19 Thank You! 19
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